Chinese Citizens Extradited from Vanuatu for Pyramid Scheme

Asia Blockchain Review

Six Chinese citizens have been extradited from the Pacific island nation of Vanuatu for charges in connection to a pyramid scheme involving the PlusToken cryptocurrency platform.

Investigations in China Lead to Crypto-based Scheme in Vanuatu

Cointelegraph reported that the Chinese suspects were captured on charges involving a cryptocurrency platform. These charges were categorized as ‘pyramid schemes’, according to a statement by the Yancheng Public Security Bureau.

Earlier this month, Yancheng police in China said that they have been working with Vanuatu police to extradite the six Chinese citizens for further investigation in China, following negotiations between representatives of the two countries.

The charges against PlusToken and its staff have prompted a series of investigations in China and abroad. Government authorities reportedly carried out investigations in the cities of Beijing, Hunan, and Jiangsu to find the criminals and bring them to justice.

Digital Pyramid Scheme

Earlier this year, the Yancheng Public Security Bureau received reports about the pyramid scheme on PlusToken, in which promoters were allegedly advertising the crypto platform on the WeChat messaging service.

To attract new users to the platform, PlusToken held events such as cocktail parties and conferences in Beijing as well as South Korea’s Jeju Island.

The police revealed that the platform had recruited more than 100,000 users, raising over US$189 million through membership fees. Reports have also emerged that PlusToken is currently holding over US$2.9 billion in accounts.

However, no active trading activities have been recorded for the PlusToken coin PLUS.

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Asia Blockchain Review aims to connect all blockchain enthusiasts on a regional scale, facilitating the technological underpinnings of blockchain through a range of group discussions, technical workshops, conferences and consulting programs.